Individual life insurance premium and policy sales growth showed no signs of slowing in the third quarter.
Total new annualized premium increased 16% year over year to $4.3 billion, and the number of policies sold rose 10%, according to the latest LIMRA research. In the first nine months of 2025, new annualized premium totaled $12.8 billion, up 13% over the previous year, while policy count rose 6% year to date.
“It was another strong quarter for individual life insurance sales,” said Sean Grindall, senior vice president and head of life and annuities for LIMRA. “All product lines except for fixed universal life recorded positive premium and policy sales growth. LIMRA expects this sales trend to continue through the end of 2025, with sales growth moderating over the next few years.”
The report broke down third-quarter performance by product category.
Whole life. For the fourth consecutive quarter, whole life sales posted positive growth. New premium totaled $1.5 billion in the third quarter, 12% above the previous year’s results. The number of whole life policies sold surged 18%, marking the largest growth since at least 1990. Year to date, whole life new premium climbed 6% to $4.6 billion compared with the previous year’s results, and policy count grew 11% year over year.
Variable universal life. New premium surged 46% to $751 million, driving overall premium growth. The number of policies sold grew 6% in the quarter. Less than half of variable universal life writers reported sales gains in the third quarter, but this includes eight of the top 10 carriers, which represent 90% of the new annualized premium collected. New premium totaled $1.9 billion in the first nine months of 2025, up 35% year over year, and policy count improved 5%.
Term life insurance. New premium totaled $754 million, 4% above third-quarter 2024 results. Policy count increased 4% in the quarter. Several carriers attribute their growth to rising consumer interest, underwriting automation and expanded distribution. In the first nine months of 2025, term new premium increased 2% year over year to $2.3 billion.
Indexed universal life. New premium was just over $1 billion. Nine of the top 10 writers reported growth, citing expanded distribution, enhanced products and a strong equity market. Policy count improved 8% in the third quarter. Year to date, new premium reached a record-high $3.2 billion, 20% higher than the previous year’s results.
Fixed universal life. Sales fell for the fourth consecutive quarter. New fixed universal life premium dropped 2% in the third quarter to $249 million. Policy count slipped 1% from the third quarter of 2024 results. In the first nine months of the year, fixed new premium was $732 million, 4% lower than the previous year’s results, and policy count contracted 6%.
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